Britain left the European Union in the end of January
UK shares have been under pressure due to Brexit for a long time, yet negotiations and uncertainty is finally over. Now, the justified question is – how does London Stock Exchange evolve without the EU?
Analysts expect British economy to grow in a slow pace after having left the European Union. Yet, British shares are expected to claw back some loss they experienced due to Brexit. To speak more precisely, they may catch up with growth similar to the US, as Britain’s growth was slowed down due to Brexit uncertainty.
“Uncertainty around Brexit devaluated the U.K. financial market that is looks very attractive now. Valuations remain low and that won’t change overnight,” said Beata Manthey from CITI Group. According to her, about 70% of FTSE 100 revenues come from abroad.
In comparison to other foreign titles, shares are devaluated. Apart from that, we may expect high dividend yields from British shares. “If you’re holder of any blue chips, you will end up winning,“ she added.